GoPro Inc. (GPRO) has announced a restructuring plan that involves a reduction of approximately 15% of its workforce. This initiative will begin in the third quarter of 2024 and is anticipated to be largely completed by year-end. The announcement aligns with the company's previous disclosure on August 6, 2024, during its Second Quarter earnings call, where it outlined plans to reduce operating expenses by about $50 million. As a result, GoPro's projected fiscal 2024 expenses will be approximately $320 million, with a margin of error of plus or minus $5 million for fiscal 2025.
The restructuring plan is projected to incur total charges ranging from $5 million to $7 million. Of these, around $1 million will be cash expenditures in the third quarter of 2024, with the remaining $4 million to $6 million expected in the fourth quarter.
Most of these restructuring and related charges are expected to be recognized in the fourth quarter of the fiscal year ending December 31, 2024.
